BILL ANALYSIS
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| SENATE COMMITTEE ON NATURAL RESOURCES AND WATER |
| Senator Fran Pavley, Chair |
| 2009-2010 Regular Session |
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BILL NO: SB 672 HEARING DATE: May 12, 2009
AUTHOR: Cox URGENCY: No
VERSION: As Introduced CONSULTANT: Dennis O'Connor
DUAL REFERRAL: No FISCAL: No
SUBJECT: South Lake Tahoe Public Utilities District: water
meters.
BACKGROUND AND EXISTING LAW
In 1991, the Legislature passed and the Governor signed SB 229
(Boatwright). This bill created and implemented the Water
Measurement Law. Among other things, the bill required that a
water meter be installed as a condition of new water service
beginning January 1, 1992. The bill did not require volumetric
pricing.
In 2003, the Legislature passed and the Governor signed AB 514
(Kehoe). Among other things, the bill:
Required urban water suppliers that receive water from the
federal Central Valley Project (CVP), by January 1, 2013, to
install water meters to all residential and nonagricultural
commercial buildings constructed prior to March 1, 1992.
Required these urban water suppliers, by January 1, 2013, to
begin charging customers for water based on the actual volume
of deliveries, as measured by a water meter.
Allowed water agencies to cover the costs of complying with
the bill by raising rates, fees, or charges.
In 2004, the Legislature passed and the Governor signed AB 2572
(Kehoe). For all urban water suppliers not subject to the
provisions regarding CVP contractors, the bill:
Required installation of water meters on all municipal and
industrial service connections by January 1, 2025.
Required each customer that has a service connection with an
installed water meter to be charged based on the actual volume
of deliveries, as measured by the water meter, by January 1,
2010.
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Allowed, in order to provide customers with experience in
volume-based water service charges, a delay for one annual
seasonal cycle of water use, the use of meter-based charges
for service connections that are being converted from
nonvolume-based billing to volume-based billing.
Allowed the urban water supplier to recover the cost of
providing services related to the purchase, installation, and
operation of a water meter from rates, fees, or charges.
PROPOSED LAW
This bill would, for the South Tahoe Public Utilities District
(PUD), delay the deadlines established by AB 2572, by 10 years,
as follows:
The date to begin charging customers that have an installed
water meter based on the actual volume of deliveries, as
measured by the water meter, would be delayed from January 1,
2010 to January 1, 2020.
The date for the installation of water meters on all municipal
and industrial service connections would be delayed from
January 1, 2025 to January 1, 2035.
This bill would also make numerous findings and declarations
regarding South Tahoe PUD.
ARGUMENTS IN SUPPORT
According to South Tahoe PUD, "the District faces the challenges
of long Sierra winters as well as the Tahoe Regional Planning
Agency's (TRPA) grading restrictions which only allow
construction, that disturbs the soil, to occur from May 1 until
October 15 each years. As such, we cannot install as many
meters as can our sister agencies elsewhere in the state."
"In addition to this challenge, the District faces a formidable
task of replacing thousands of feet of undersized water
infrastructure to prove adequate fire protection capability
amidst the tinder dry forest in which our community lies."
ARGUMENTS IN OPPOSITION
The Sierra Club and the Natural Resources Defense Council (NRDC)
raise objections to any exemption or delay of the metering and
billing requirements established under AB 2572, raising the
following points:
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Timelines established under current law are very lenient for
completing meter installation - ample time remains to meet the
existing deadline for meter installation.
Water metering and volumetric pricing are paramount to giving
Californians an accurate price signal about their water use.
Data show that per capita water use is at least 20 percent
less in areas where water users are billed by volume rather
that flat-rate billing.
The state is in a drought - now is not the time to delay water
metering.
The Sierra Club also raises questions about the South Tahoe
PUD's efforts to comply with the provisions of AB 2572.
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COMMENTS
Timelines were result of negotiation. As was well reported in
the press at the time, then Assemblymember Kehoe's initial water
metering bill (AB 306) was not well received by the Chair of the
Assembly Appropriations Committee, then Assemblymember
Steinberg. It was only through much discussion and negotiation
that first AB 514, and then AB 2752 passed.
What do construction windows or infrastructure improvements have
to do with reading meters? Current law does not require the
retrofit of any exiting service connections with a water meter
by 2010. It only requires that for those connections with
meters (service connections made after January 1992), that those
connections be billed volumetrically based on the meter reading.
While there might be an issue with South Tahoe PUD complying
with the installation requirements because of their unique
weather and construction restrictions, it is difficult to see
how that would uniquely affect South Tahoe PUD's ability to read
existing meters and charge volumetrically.
Delay of completion date premature? It might be that it will be
difficult for South Tahoe PUD, with existing resources, to
comply with the installation requirements because of their
unique weather and construction restrictions. However, that
deadline is over 15 years away. It might be more prudent to
wait, say 10 years, before determining whether or not there is a
compelling need to delay the deadline for full installation of
water meters.
SUGGESTED AMENDMENTS: None
SUPPORT
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South Tahoe PUD
OPPOSITION
Natural Resources Defense Council
Sierra Club
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